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Housing price dynamics and convergence in high-tech metropolitan economies

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  • Kang, Wensheng

Abstract

Abstract This paper estimates the joint effects of spatial diffusion and high-tech industry transmission on housing prices. I find these effects are significant but generate different short-run dynamics and long-run convergence of housing prices. The spatial diffusion effect is instantaneous but short-lived, whereas the high-tech industry effect is persistent. The dynamics conclusion is supported by estimates of a dynamic panel model using data of 42 high-tech metropolitan areas. A further convergence test shows that it is the high-tech industrial transmission mechanism, not the spatial diffusion, to drive the housing price convergence.

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Bibliographic Info

Article provided by Elsevier in its journal The Quarterly Review of Economics and Finance.

Volume (Year): 51 (2011)
Issue (Month): 3 (June)
Pages: 283-291

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Handle: RePEc:eee:quaeco:v:51:y:2011:i:3:p:283-291

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Web page: http://www.elsevier.com/locate/inca/620167

Related research

Keywords: Housing prices Spatial diffusion Industrial transmission Convergence GMM Bayesian estimation;

References

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Cited by:
  1. Simlai, Prodosh, 2014. "Estimation of variance of housing prices using spatial conditional heteroskedasticity (SARCH) model with an application to Boston housing price data," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(1), pages 17-30.

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